Test Bank For Business Law Text & Exercises 10th Edition By Roger LeRoy Miller

1. Law consists of enforceable rules governing individuals and their society.

  a.  True

  b.  False

ANSWER:   True

2. Laws and government regulations affect almost all business activities.

  a.  True

  b.  False

ANSWER:   True

3. Business people do not need to understand court processes because if they are sued, the lawyers will know those rules.

  a.  True

  b.  False

ANSWER:   False

4. The study of business law involves an ethical dimension.

  a.  True

  b.  False

ANSWER:   True

5. Small-business owners are company leaders who do not have to deal with management issues and understand the detailed laws.

  a.  True

  b.  False

ANSWER:   False

6. Precedents are court decisions that guide future legal decisions to create stability, consistency, and predictability.

  a.  True

  b.  False

ANSWER:   True

7. A small-business owner is likely to face legal questions when determining ways to reduce business taxes.

  a.  True

  b.  False

ANSWER:   True

8. Administrative agencies make rules and regulations called administrative law.

  a.  True

  b.  False

ANSWER:   True

9. Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

  a.  True

  b.  False

ANSWER:   False

10. In a common law system, judges are obligated to follow the precedents established within their jurisdictions.

  a.  True

  b.  False

ANSWER:   True

11. Courts may depart from precedents.

  a.  True

  b.  False

ANSWER:   True